Preventing Foreclosure: Options for Pre-Foreclosure in Kansas City
Pre-foreclosure in Kansas City is becoming more common, with many homeowners struggling to keep up with mortgage payments. Understanding the pre-foreclosure process is essential for both homeowners and potential buyers.
What is Pre-Foreclosure in Kansas City?
Homeowners enter pre-foreclosure when they miss several mortgage payments. Typically, after three to six months of non-payment, the lender issues a formal warning, alerting the homeowner to their risk of default. This period is known as “pre-foreclosure.”
With the foreclosure process back on track post-pandemic, many Kansas City homeowners are facing this situation. Banks often allow about three months for homeowners to catch up on payments, but each lender may have different policies. It’s best to communicate directly with your lender to understand what options are available. If you’re unable to make payments, the lender can foreclose on the home, assume ownership, and start the eviction process. Fortunately, homeowners in pre-foreclosure still have options to avoid foreclosure and protect their credit.
Options for Homeowners in Pre-Foreclosure
If you’re behind on payments, your lender will likely send a “Notice of Default,” stating that you’ve missed 90-180 days of payments. Receiving this notice can feel overwhelming, but taking immediate action is essential.
Here are several options that may help delay or prevent foreclosure:
1. Refinancing Your Mortgage
If you have equity in your home, refinancing could lower your monthly payments. Many lenders or local mortgage brokers offer refinancing options. Contact us if you need help finding a reliable broker.
2. Sell to a Cash Buyer
When refinancing isn’t an option, a quick sale to a cash buyer, such as Mastiff Home Buyers, may work. This can help you settle missed payments and avoid foreclosure. Learn about common home repair costs here.
3. Negotiate with Your Lender
Sometimes, lenders can offer alternatives, like forgiving part of your missed payments. Mastiff Home Buyers can also help negotiate with your lender to reduce your debt burden.
4. Short Sale
If your home needs repairs, a short sale may be an option. In a short sale, you sell the property for less than the mortgage balance, and the lender may take the loss as a tax write-off. However, in some cases, you may still be responsible for the difference.
5. Declare Bankruptcy
Bankruptcy can temporarily halt foreclosure, giving you time to reorganize debt. However, bankruptcy remains on your credit report for years and can impact future financial options.
How Mastiff Home Buyers Can Help
If you’re in pre-foreclosure and struggling to find a solution, Mastiff Home Buyers offers support.
- Stop the Pre-Foreclosure Process: We can assist with a short sale. Submit your info on our website, and we’ll review your situation.
- Receive a Cash Offer: We buy houses in Kansas City and can make a cash offer to help you close quickly. Just fill out the form to get started.
- We Take Over Payments and Costs: We can assume your payments and other expenses, such as taxes and insurance, so you can leave ownership behind.
- Get Free Guidance: We offer consultations to help you make an informed decision, with no obligation or pressure. Our success is measured by the people we help, so let us assist you through this difficult time.
If you want to discuss your options, call us at 816-750-5325 or submit your information on our website. Mastiff Home Buyers is here to provide the knowledge and support you need.